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How Long Until I Earn Back What My Solar Panels Cost?

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How Long Until I Earn Back What My Solar Panels Cost?

With all the climate change problems ravaging our planet, it’s no surprise so many people are talking about renewable energy. After all, if you can have all the tech and electricity you need without hurting the planet, it’s a win-win.

Many homeowners are choosing solar panels for another reason too, though: the savings. They hear solar panels will save money over time and start seeing dollar signs.

It’s important to have accurate expectations. How long will it take to pay off your solar panels cost and start saving money?

Solar Payback Time: How Long Will It Take?

Your solar payback time is the amount of time it takes for your solar system to save you enough money to pay for itself. From that point on, the savings are cash in your pocket.

As you might expect, there’s no exact payback time that’s the same for everyone. The average ranges from six to nine years, but some homeowners have payback times of three or four years.

Factors That Impact Your Payback Time

What is the difference between homeowners who get three-year payback times and those who don’t get their payoff for nine years? Several factors come into play.

Where You Live

It’s so obvious most homeowners don’t think of it: the more sun you get, the more value your solar panels will have.

We’re fortunate that Darwin is one of the sunniest cities in Australia. Homeowners in our area tend to enjoy shorter payback times than those in Sydney for instance.

Your Solar Panels Cost

It makes sense: the less you spend on your solar system, the faster you’ll save enough money to pay for it.

Not so fast, though. You don’t want to sacrifice quality for a cheap price. If you do, you could have less efficient solar panels so your payback time is longer than expected.

You could also have enough repair costs that you pay as much as you would have for a quality system.

Above all, make sure you hire a qualified solar power professional to install your system. The cost is well worth the peace of mind, knowing you’re getting the best efficiency you can.

Your Feed-in Tariffs

Most homeowners look at their energy bills and think that’s how much they could save each month. In some cases, you stand to save more.

If your solar system produces more energy than you need, your power company may buy that energy from you. These payments are called feed-in tariffs, or FiTs.

Each energy company has its own FiT policy, so contact yours to find out what you can save.

Getting the Most from Your Solar Panels

When you first research how much solar panels cost, it’s easy to only see how much they’ll cost you. The fact is that they can pay for themselves and save you money in less time than you think, depending on the variables above.

To take the next step with an estimate for your home, call our solar panel experts today.